Reforming Government Subsidies in the New Member States of the European Union

Author/Editor:

Alex Segura-Ubiergo ; Taline Koranchelian ; Carlos Mulas-Granados

Publication Date:

July 1, 2008

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Subsidy reform has been a key component of the pre-accession reform agenda of the 10 new member states that joined the EU in 2004 (EU-10). During the pre-accession period, these countries had to undertake a number of important structural reforms in their economies. One of the most critical reforms was to reduce, and in some cases, eliminate their subsidy programs. This paper analyzes how key subsidy reforms (in state aid to enterprises, agriculture, energy, and transportation) were carried out in the EU-10 during 1995–2005, and explains observed variations across types of subsidies and across countries. Based on an extensive qualitative analysis, the paper draws lessons for future successful reforms of government subsidies. 32B

Series:

Working Paper No. 08/165

Subject:

English

Publication Date:

July 1, 2008

ISBN/ISSN:

9781451870237/1018-5941

Stock No:

WPIEA2008165

Format:

Paper

Pages:

39

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